Data Set Background (Questions 1 to 5) Fraud Detection in On…

Data Set Background (Questions 1 to 5) Fraud Detection in Online TransactionsThis dataset simulates online transaction records, predicting whether a transaction is fraudulent.This dataset is without replications. Features: **Transaction_Amount (Numerical):** Transaction amount in USD (5-10,000) **Transaction_Hour (Numerical):** Hour of the day when the transaction occurred (0-23) **Payment_Method (Categorical):** Credit Card, Debit Card, PayPal, Crypto **Device_Type (Categorical):** Mobile, Desktop, Tablet **Location_Match (Categorical):** Yes, No (whether transaction location matches the user’s registered location) **Previous_Frauds (Numerical):** Number of previous fraudulent transactions by the user (0-5) **Account_Age_Days (Numerical):** Age of the account in days (1-5000) **International_Transaction (Categorical):** Yes, No **Fraudulent (Binary Output):** Whether the transaction was fraudulent (1 = Yes, 0 = No)  (Response variable)

Question 2: Logistic Regression Model (Use trainData for thi…

Question 2: Logistic Regression Model (Use trainData for this question)  (13 points) a. i) (2 points) Create a logistic regression model using “Fraudulent” as response variable and “Account_Age_Days” and “International_Transaction” as predicting variables. Call it model1. Display the summary of the model.   ii) (2 points) Interpret the coefficient of “Account_Age_Days” for model1 with respect to the log-odds and odds of the response.   iii) ( 2 points) What does the value of intercept represent in terms of baseline fraud probability? b i. (2 points) Using the “trainData” dataset, create a logistic regression model using “Fraudulent” as response variable and all variables in “trainData” as predictors (call it model2) and display the summary of model2.  ii. ( 2points) What does the summary of model2 suggests about the likelihood of fraud for international transactions compared to domestic transactions? iii. ( 3 points) What do the null and residual deviance indicate in the summary of the model.  Based on the null and residual deviance values, how well does this model fit the data? What does the change in deviance indicate? Use alpha level of 0.01.